ANNUAL CERTIFICATION BY PUBLIC FINANCIAL DISCLOSURE FILERS
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1 ANNUAL CERTIFICATION BY PUBLIC FINANCIAL DISCLOSURE FILERS With the below signature, I, (print name), hereby certify that I have read the enclosed summary and understand the negotiating employment, procurement integrity, and postgovernment employment statutory restrictions that apply to Department of Defense (DoD) personnel. In particular, I acknowledge: WHILE A DOD EMPLOYEE: 1. It is a crime for me to participate in a particular matter that will have a direct and predictable financial effect on any entity or individual with whom I am negotiating my post-government employment. 2. If I am a procurement official, I may not participate in a procurement valued in excess of the simplified acquisition threshold ($250,000 as of January 2018) when I am seeking employment with a bidder or offeror. Further, I must transmit a written disqualification to the contracting officer, source selection authority, my immediate supervisor, and a copy to my ethics office, identifying the procurement, describing the nature and dates of my participation, and identifying the bidder or offeror and describing its interests. AFTER DEPARTING FROM FEDERAL SERVICE: 3. I may not knowingly make, with the intent to influence, any communication to or appearance before an employee of the United States on behalf of any other person (except the U.S.) in connection with a particular matter involving specific parties in which the U.S. is a party or has a direct and substantial interest: a. For the lifetime of any particular matter involving specific parties in which I participated personally and substantially during my Federal service. b. For two years after the termination of my Federal service for any particular matter involving specific parties which I know or reasonably should know was actually pending under my official responsibility within the one-year period prior to my termination. 4. For one year after my Government service terminates, I may not knowingly represent, aid, or advise any other person (except the U.S.) concerning any ongoing trade or treaty negotiation in which, during my last year of Government service, I participated personally and substantially as an employee. 5. If I am a senior employee, for one year after my service in a senior position terminates, I may not knowingly make, with the intent to influence, any communication to or appearance before an employee of a department or agency in which I served in any capacity during the one-year period prior to termination from senior service, if that communication or appearance is made on behalf of any other person (except the U.S.), in connection with any matter where official action is sought. (NOTE: A separate rule applies to the Secretary of Defense because he is a very senior employee.) 6. I am also prohibited from engaging in lobbying activities with respect to DoD, for one or two years, as applicable based upon my rank or grade. 7. If I am a covered procurement official, I may not, for a year after my departure from Federal service, accept compensation from the prime contractor on a DoD contract valued in excess of $10,000,000 in which I personally participated. I further certify that I have not knowingly violated these statutes. Signature Date 2018
2 SUMMARY OF SEEKING & POST-GOVERNMENT EMPLOYMENT LAWS & REGULATIONS If after reading the below you have questions or concerns, please contact your local ethics counselor before returning your certification. SEEKING POST-GOVERNMENT EMPLOYMENT: 1. CRIMINAL RESTRICTIONS ON NEGOTIATING EMPLOYMENT. Federal employees are prohibited from participating personally and substantially in an official capacity in any particular matter if it will have a direct and predictable effect on their actual or imputed financial interests, which includes any negotiation or arrangement concerning prospective employment, and the financial interest of the entity with which they are negotiating or have an arrangement. Particular Matter is a matter that involves deliberation, decision, or action that is focused on the interests of specific persons or a discrete and identifiable class of persons. These matters may include a contract, claim, application, judicial or other proceeding, request for a ruling or other determination, controversy, investigation, or charge. A particular matter could even include legislation or policy-making that is narrowly focused on the interests of a discrete and identifiable group of parties or organizations, e.g., DoD policy affecting only military aircraft manufacturers. Personal and Substantial Participation means to participate directly. It also includes the direct and active supervision of the participation of a subordinate. Participation is substantial if it is of significance to the matter, and may occur through decision, approval, recommendation, investigation, or advice. One act, such as approving a critical step, may be substantial, but an entire series of peripheral acts may not be. Direct and Predictable Effect means a close, causal link between any action taken on the matter and any expected effect of the matter on the potential employer s financial interest. An effect may be direct even though it does not occur immediately, although effects on the general economy are not direct. There must also be a real, not speculative, possibility that the matter will affect the financial interest, but the size of the gain or loss is not relevant. Negotiating is any discussion or communications with the organization or an agent, with the mutual view of reaching an agreement regarding possible employment. It is not limited to just discussing specific terms and conditions of employment in a specific position. Please note that regulations place similar restrictions when you are seeking employment. Please also note that your disqualification remains in effect until it may be withdrawn or appropriate authority authorizes your participation. 1
3 2. PROCUREMENT INTEGRITY RESTRICTION ON SEEKING EMPLOYMENT. DoD personnel may not participate personally and substantially in a DoD procurement valued at more than the simplified acquisition threshold ($250,000 as of January 2018) when seeking employment with a bidder or offeror. The rules require that personnel file written disqualification statements with the contracting officer, source selection authority, and immediate supervisor. They must identify the procurement, describe the nature and specific dates of participation in the procurement, and identify the bidder or offeror and describe its interest. DoD personnel must promptly report, in writing, to their supervisors and ethics officials, any employment contact with a bidder or offeror in a DoD procurement valued at more than the simplified acquisition threshold, even when they promptly reject the employment contact. Employment contact - inquiries regarding potential future employment, including negotiations, and responses, other than immediate and clear rejections, to unsolicited communications regarding possible employment. It does not include requesting a job application, but does include a 2-month period after forwarding a resume unless the possibility of employment is rejected prior to that time. DoD Procurement Valued at More than the Simplified Acquisition Threshold - DoD acquisition, using competitive procedures and appropriated funds, for a contract in excess of the simplified acquisition threshold ($250,000 as of January 2018). Personal and Substantial Participation means active and significant involvement in any of the following activities directly related to the procurement: - drafting, reviewing, or approving the specifications or statement of work; - preparing or developing the solicitation; - evaluating bids or proposals; - selecting a source; - negotiating price or terms and conditions; or - reviewing and approving the award. Unless and until you have received written authorization from the Head of the Contracting Authority, you will remain disqualified. POST-GOVERNMENT SERVICE EMPLOYMENT RESTRICTIONS U.S.C. 207: CRIMINAL REPRESENTATIONAL RESTRICTIONS Senior Officials - Senior Officials are all Flag and General Officers, and civilian personnel whose basic rate 2
4 of pay is at or above 86.5% of the basic rate for Executive Schedule Level II ($164,004 as of January 2018, which amount will be adjusted annually as pay rates change). Officials who meet this threshold are subject to the restrictions under 18 U.S.C. 207(c) and (f), summarized immediately below. For 1 year after leaving a senior position, they may not make any communications or appearances on behalf of any other person before any officer or employee of the agency or agencies in which they served within 1 year prior to leaving the senior position, with the intent to influence in connection with any matter on which official action is sought by the other person. See 18 U.S.C. 207(c). You may request a more detailed explanation from your local ethics counselor. Agency: - For Presidentially-appointed, Senate-confirmed (PAS) appointees: Agency = all of DoD, including the Military Departments and DoD Agencies. - For Flag and General Officers and all other civilian senior officials: Agency = their component within DoD. Components are each of the Military Departments, DISA, DIA, DLA, NGA, NRO, DTRA, and NSA. Any DoD entity not part of a component in the previous list is included in the overall DoD component. For Flag and General Officers who served outside of their Military Departments during their last year of service, their agencies are their Military Departments and the other components in which they served. In addition, for 1 year after leaving a senior position, they may not aid, advise, or represent a foreign government or foreign political party with the intent to influence any officer or employee of any Federal department or agency, or Member of Congress. See 18 U.S.C. 207(f). Violations of 18 U.S.C. 207 are subject to punishment under 18 U.S.C. 216, which includes imprisonment, fines, or both. Very Senior Official (Secretary of Defense) - For 2 years after leaving that very senior position, they may not make any communications or appearances on behalf of any other person before any employees in positions on the Executive Schedule in all agencies of the executive branch, with the intent to influence in connection with any matter on which official action is sought by the other person. In addition, for 1 year after leaving a very senior position, they may not aid, advise, or represent a foreign government or foreign political party with the intent to influence any officer or employee of any Federal department or agency, or Member of Congress. See 18 U.S.C. 207(f). 3
5 All Personnel - Forever after terminating Federal service, they may not make a communication or appearance on behalf of any other person before any officer or employee of any Federal agency or court with the intent to influence in connection with a particular matter in which they personally and substantially participated, which involved a specific party at the time of the participation and representation, and in which the U.S. is a party or has a direct and substantial interest. Specific Parties are identifiable parties other than the Federal Government. For 2 years after terminating Federal service, Government officers and employees may not make a communication or appearance on behalf of any other person before any officer or employee of any Federal agency or court with the intent to influence in connection with a particular matter which they reasonably should have known was actually pending under their official responsibility within 1 year before they left Federal service, which involved a specific party at that time, and in which the U.S. is a party or has a direct and substantial interest. Official Responsibility means direct administrative or operating authority to approve, disapprove, or otherwise direct, Government actions. It includes a supervisor at any level having responsibility for the actions of a subordinate employee who actually participates in a matter. For 1 year after terminating Federal service, they may not represent, aid, or advise someone else on the basis of covered information concerning any ongoing trade or treaty negotiation in which they participated personally and substantially in their last year of Federal service. Trade Negotiations are those undertaken pursuant to the Omnibus Trade and Competitiveness Act of 1988 (19 U.S.C. 2902). Treaties are international agreements that require the advice and consent of the Senate. Covered Information includes agency records accessible to the employee but exempt from disclosure under the Freedom of Information Act. For 1 year after terminating Federal service, as a private sector Information Technology Exchange Program assignee, no former assignee shall knowingly represent, or aid, counsel or assist in representing any other person in connection with any contract with that agency. There are exceptions to the restrictions of 18 U.S.C
6 2. PROHIBITION ON LOBBYING ACTIVITIES Section 1047 of the 2018 National Defense Authorization Act prohibits General/Flag officers, and civilian equivalents, from engaging in lobbying activities with respect to the Department of Defense for one or two years, depending on rank/grade. This is a complex provision and departing senior officials are urged to consult with ethics counsel for specific advice. 3. PROCUREMENT POST-GOVERNMENT EMPLOYMENT RESTRICTIONS For 1 year after a designated date, covered DoD personnel may not accept compensation from the prime contractor on a DoD contract valued in excess of $10,000,000. Designated Date for Covered Personnel: - Date of selection or award of contract: for service by procuring contracting officers, source selection authorities, members of source selection evaluation boards, and chiefs of financial or technical evaluation teams; - Last date of service on the contract: for program managers, deputy program managers, and administrative contracting officers; - Date of decision for officials who personally made any of the following decisions: 1) to award contracts, subcontracts, or modifications of contracts or subcontracts, or task or delivery orders in excess of $10,000,000, 2) to establish overhead or other rates valued in excess of $10,000,000, 3) to approve issuance of a contract payment in excess of $10,000,000, or 4) to pay or settle a claim in excess of $10,000,000. Valued in Excess of $10,000,000: - contract, including all options: value or estimated value at the time of award; - indefinite-delivery/indefinite quantity or requirements contract: total estimated value of all orders at the time of award; - any multiple award schedule contract: estimate, unless contracting officer documents a lower estimate; - Basic Ordering Agreement: value of delivery order, task order or order claims amount paid or to be paid in settlement; and negotiated overhead or other rates: estimated monetary value, when applied to the Government portion of the applicable allocation base. They may accept compensation from any division or affiliate of the contractor that does not produce the same or similar products or services as the entity responsible for the contract. Same or Similar - a product or service must be dissimilar enough from that under the contract to warrant use of the exception. 5
7 REQUIREMENT TO REQUEST AN OPINION: If you will be receiving compensation from a defense contractor within two years of leaving DoD, you may be required to request a written opinion regarding the applicability of the post- employment restrictions to your anticipated post-government employer. This requirement applies to any employee who participated personally and substantially in an acquisition with a value in excess of $10M and who serves or served in: (1) an Executive Schedule position; (2) a Senior Executive Service position; (3) a general or flag officer position; or (4) in the position of program manager, deputy program manager, procuring contracting officer, administrative contracting officer, source selection authority, member of the source selection evaluation board, or chief of a financial or technical evaluation. Check to see if this requirement applies visit the AGEAR website at DoD personnel required to receive this opinion must submit the request through this online process. Please contact your local ethics office with specific questions. 6
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